Give a literature review.
1. Value Proposition
2. Market Segmentation, targeting and positioning
3. Comprehensive Market analysis
4. Competitor Analysis
5. Core competency and Competitive Advantage
1. Value Proposition
The activities carried out by entrepreneurs are focused on adding value to the business and the entire industry. The success of an idea depends on the ability to promote the relationship with investors, potential customers, and the business environment. The shift in corporate sector from the hard and technical skills to more sophisticated interpersonal skills has changed the focus to how the products and services benefit the customers. Value proposition calls for the strategic combination of time and effort with the respective tastes and preferences of the market (Carvalho and Jonker, 2015). Entrepreneurship focuses on creating a difference within the industry, gaining the targeted market share, improve customer satisfaction, and esteem ethics. The customer is the center of the value proposition.
2. Market Segmentation, Targeting, and Positioning
Segmentation in corporate sector involves the grouping of the market characteristics based on the respective customer needs. The process is essential in approaching each business-customer relationship and satisfaction issues with a unique and favorable strategy. Entrepreneurs are responsible for the identification of the market segments according to the respective variables (Hassan and Craft, 2011). Each section will reveal the existing economic position and define the investment gaps, which will assist in setting up the schedule and resources to be channeled to a proposed business. The processes of positioning the company should be forecasted quantitatively and qualitatively to identify the effect of the market, industry, and profit margin.
3. Comprehensive Market Analysis
Successful ideas involve the processes meant to understand the market structure and investment culture. Market analysis segregates the potential market from the actual market to design a model of the expected reality (Harms, 2012). The information collected in market segmentation is essential in depicting the viability of the business regarding the level of sustainability. The composition of the market about the demographic characteristics, tastes and preferences, and the financial capacities should be considered efficiently for any business. The entrepreneurs are responsible for the competent analysis of the market trends regarding downturns and booms.
4. Competitor Analysis
The evaluation of the relationship between the company and its competitors in the industry on how it affects the operations of the enterprise is referred to competitor analysis. Entrepreneurship considers the strength and weakness of the competitors and design strategies how such features can be incorporated in the strategic operations of the business to attain maximum profit at low cost (van Stel and Stel, 2006). It is important for an organization to know the financial capacity of competitors as well as their respective vulnerability. The possession of skills to incorporate the position of the other investors in the market to ascertain the sustainability of the organization is based on the knowledge of competition.
5. Core Competency and Competitive Advantage
Unique skills in the business are essential in setting up a safe environment for profit maximization and competitive market coverage. Synergistic skills in team leadership and investment management will sustain the business in the industry. Competitive advantages emanate from customer satisfaction and retention techniques (Cardy and Selvarajan, 2006). Entrepreneurs generate and develop skills meant to create value within the organization such as innovation, cost reduction, sales conversion, and stable supply systems. The management of the business should focus on the customer needs, technology, and leveraging resources.
Carvalho, J. M. S. and Jonker, J. (2015) ‘Creating a balanced value proposition: Exploring the
advanced business creation model’, The Journal of Applied Management and Entrepreneurship, 20(2), pp. 49–64. doi: 10.9774/gleaf.3709.2015.ap.00006
Hassan, S. S. and Craft, S. H. (2011) ‘An examination of global market segmentation bases and
strategic positioning decisions’, International Business & Economics Research Journal (IBER), 3(9), doi: 10.19030/iber.v3i9.3725
Harms, R. (2012) ‘A Multivariate analysis of the characteristics of rapid growth firms, their
leaders, and their market’, Journal of Small Business & Entrepreneurship, doi: 10.1080/08276331.2009.10593464
Van Stel, A. and Stel, V. A. (2006) Empirical analysis of entrepreneurship and economic
growth. United States: Springer-Verlag New York
Cardy, R. L. and Selvarajan, T. T. (2006) ‘Competencies: Alternative frameworks for
competitive advantage’, Business Horizons, 49(3), pp. 235–245. doi: 10.1016/j.bushor.2005.09.004